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Author Question: At low levels of output, the economy can expand with little or no increase in the overall price level because (Read 106 times)

MGLQZ

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on: Apr 19, 2019

Question 1

If firms believe that a downturn in sales and output is temporary and that increased output will be needed in the future, they may choose to


◦ fire all their workers.
◦ sell off the plant.
◦ close a plant permanently.
◦ reassign their workers to different jobs.

Question 2

At low levels of output, the economy can expand with little or no increase in the overall price level because


◦ at low levels of output the aggregate supply curve is negatively sloped.
◦ people will be expecting the price level to fall.
◦ there is excess supply so prices are kept low.
◦ firms likely hold excess labor and capital, and production can be increased without causing input prices to increase.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by MGLQZ on Apr 19, 2019

l.stuut

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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MGLQZ

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Reply #2 on: Apr 19, 2019
Thanks


l.stuut

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Reply #3 on: Apr 19, 2019
Welcome :)


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